Using Effective Leadership to Build a Strong Culture Roy Lydic- Schneider Downs and Company

Why is this more important than ever? Mass exodus of baby boomers/lack of adequate succession planning Remote and flexible work environments Changing demographics 51% of American workers feel no real connection to their jobs, many are “actively disengaged” 40% of companies headquartered in Asia have a strong coaching culture vs. 12% in North America

Why is this more important than ever? “Everyone wants to make a dent in the Universe” Steve Jobs “The talent process which delivers the single greatest overall business impact is coaching.” Josh Bersin – High Impact Talent Management

What is Culture? Culture is the beliefs and behaviors that determine how an organization’s employees and management interact and handle external and internal dynamics and transactions. It generally develops over time from the cumulative traits and styles of the people who the organization hires. An organization’s culture will be reflected in every aspect of its operations.

What are the primary drivers of Culture? The effectiveness or ineffectiveness of the organization’s leadership Are they good at motivating and inspiring their team? Do they have emotional intelligence? Do they recognize the difference between managing and leading?

What are the primary drivers of Culture? The responsiveness and quality of our team. Do we have the right people on the bus? “Get the right people on the bus, the wrong people off the bus, and the right people in the right seats.” Jim Collins, Good to Great

Qualities of Effective Leaders Understand what we can control and manage in our own behavior. Understand the difference between management and leadership. They step up in times of crisis. They are emotionally intelligent – trustworthy, persuasive, perceptive and flexible.

Qualities of Effective Leaders They listen!!!! They know their team and strive to get the right people. Their team trusts them. They don’t tolerate mediocrity. They infuse the organization at all levels with a commitment to the big picture vision.

MANAGING vs LEADING Managing Leading Plan, organize, coordinate Inspire, motivate, create Focus on systems and structure Focus on people and relationships Relies on control- directing Relies on two-way trust- coaching

Characteristics of an Ineffective Leader Ineffective interaction style Team doesn’t feel empowered or respected Micromanages Self-centric Inattentive/Poor Listener Impatient Lacks emotional control Negative thinker

Characteristics of a Strong Leader Strong people skills Effective listener Positive thinker Personable/approachable Delegates effectively – allows input, demonstrates trust. Team members feel that someone has their back. Believes in a Culture of Coaching

Characteristics of a Strong Leader They have self-awareness They are proficient at self-regulation Emotional competence is the key to putting it all together in practice.

EMOTIONAL COMPETENCE This is really the ability to manage yourself and your relationships effectively. There are many, many opinions out there, but it really comes down to five fundamental capabilities:

EMOTIONAL COMPETENCE 1. Self- Awareness We need to be able to recognize and understand our moods, emotions and drives, and especially their effect on others. It is critical that we recognize our own strengths and weaknesses (at least who are able to acknowledge they have weaknesses!) What will matter most to us is what we are good at.

EMOTIONAL COMPETENCE 2. Self-regulation The ability to think before we act. As leaders, we MUST be able to control or re-direct our disruptive impulses and moods! To be effective, we have to be able to control our emotions. We’ve ALL known “leaders” who are not very good at this!

EMOTIONAL COMPETENCE Motivation We need to embrace our work for reasons that go beyond money, power or status. Embracing our mission enables us to grasp the importance of workplace culture, the effect of a positive environment, and our dedication to being effective leaders.

EMOTIONAL COMPETENCE 4. Empathy We need to understand the emotional make-up of other people and develop our skill in adapting to others based on how they react to situations, how they think and what motivates them. Managing everybody with the same management style is a common mistake we all make.

EMOTIONAL COMPETENCE 5. Social skills This is really a summary of all of the necessary attributes of an effective leader. We need to be able to manage relationships and build trust. Without effective social skills, it is very difficult to build teams and drive progress (don’t use the word “change”).

A Culture of Coaching Is: Is not: 100% personal accountability Micromanagement Feedback is specific, productive and expected Generalized feedback, not customized Distributed decision making Role-based power Flexible Rigid Continuous conversation Conflict avoidant Based on trust Infected with suspicion

Accept and act on praise and criticism; The Matter of Feedback “When people trust you and believe you care about them, they are much more likely to: Accept and act on praise and criticism; Tell you what they really think about what you are doing well, and more importantly, not doing so well; Embrace their role on the team; Focus on improving their performance.” Kim Scott-Radical Candor

Why do managers avoid providing feedback? I don’t want to demotivate them because they are overworked already. I don’t have the time or energy to do it right. I don’t think they really want constructive feedback. They will get defensive and start blaming others. They won’t listen anyway.

Costs of Avoiding Feedback Negative effect on morale Things that “fester” grow worse Issues can be contagious Increased turnover Potential loss of value employees want to give

Tips on Giving Feedback Ask the employee to prepare a self-evaluation in advance. Prepare and know your audience (personality, motivations, etc.) Provide specific feedback. Compliment behaviors when the employee is performing well (Emotional deposits) Make it a two-way conversation – what’s working, what could be improved. Collaboratively plan steps to improve the behavior – be specific. Ask for feedback yourself!

Tips on Receiving Feedback Arrive in the proper state of mind. Do your homework!! Check your ego at the door. Don’t be shy about indicating solutions that would make you more effective. Don’t take it (or make it) personal!

Conclusion Roy M. Lydic, CPA Audit Shareholder Schneider Downs, and Company 65 East State Street, Suite 2000 Columbus, Ohio 43215 Direct Line 614-586-7208 rlydic@schneiderdowns.com